Huawei, the renowned Chinese network and electronics corporation, maintained its robust quarter-on-quarter profit acceleration. This is notable given the company’s exponential growth in its consumer division, amongst rivals such as Apple’s iPhone, and its cloud segment’s rivalry with incumbent Alibaba. The final quarter of the financial year saw Huawei netting a profit of around 13.9 billion yuan (€1.8 billion), an impressive increase of over 65 per cent from the 8.4 billion yuan earned in the same period of the previous year, as deduced from Bloomberg’s analysis of its financial figures.
The results showcase Huawei’s resilience despite its status as a subject of US sanctions and export restrictions for numerous years. Also, the corporation’s ability to rise to the challenges is evident. Huawei introduced its headliner Mate 60 smartphone range in August, boasting a seven-nanometer processor designed and manufactured domestically, giving rise to nationalistic pride on home turf. Its consumer electronics segment witnessed a hike of 17.3 per cent in 2023, amounting to sales of 251.5 billion yuan.
Huawei, after nearly collapsing from the smartphone and semiconductor industry following the severing of ties with overseas suppliers by the US in 2019, is now a beacon of China’s intent to defy American restrictions. The corporation is establishing a network of semiconductor manufacturing facilities to support its longer-term goals in fields such as artificial intelligence (AI) and electric vehicles.
Huawei’s cloud computing branch expanded by nearly 22 per cent over the year, making headway in competitive battles with Alibaba and Tencent Holdings domestically. Recently, Huawei has deployed an AI-driven weather forecasting model in association with Shenzhen’s meteorological bureau, the company’s headquarters location. Furthermore, Huawei’s chips are appearing in Chinese AI developers’ systems, including those used by the Hong Kong-based Center for Artificial Intelligence and Robotics to educate an AI aide for neurosurgeons.
While Huawei has not yet matched strides with Xiaomi, who recently launched its first own-brand EVs, the Shenzhen-based firm has been making progress in offering tech solutions for the automotive industry. The business registered a growth of 128 per cent in 2023, and Huawei has been featuring Aito vehicles in its China-based stores.
Huawei’s revival aligns with increasing pressure on Apple from the Chinese government. These administrations have been endorsing and mandating local-produced devices and technology use across varied sectors and industries, even including state-run enterprises. The introduction of the Mate 60 has also rekindled consumer support for domestic brands.
The demand for iPhones in China has seen a dramatic decrease with shipments dropping by around 33 per cent in February, compared to the same period last year, according to official figures. This continues the declining trend of the premium device’s popularity in its most significant foreign market.
However, Huawei cautioned in December about the potential threats that an unpredictable global economy and industry could present in 2024. Following its revolutionary accomplishment with 7nm technology, a range of potential reactions are being considered by the authorities in the US capital. These include imposing restrictions on Huawei suppliers and joining forces with allied nations to bolster the existing ban on semiconductor technology.
Meanwhile, Gina Raimondo, the US Commerce Secretary, has asserted that the US will go to any lengths necessary to safeguard its national security, as reported by Bloomberg.